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Should we do business in the automotive sector?

al40

Quite Involved in Discussions
#1
Hi Covers.
I was asked the other day if I could explain to a small business if they should do business in the automotive industry.

I tried to explain to them the requirements and potential CoPQ on the organization i.e. sorting, recalls, warranty, etc., but they were confused even more.

Does anyone have a presentation or links they could share that I could pass along?

Thanks,
Al40
 
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John Broomfield

Staff member
Super Moderator
#2
Hi Covers.
I was asked the other day if I could explain to a small business if they should do business in the automotive industry.

I tried to explain to them the requirements and potential CoPQ on the organization i.e. sorting, recalls, warranty, etc., but they were confused even more.

Does anyone have a presentation or links they could share that I could pass along?

Thanks,
Al40
Al40,

Would serving the automotive industry help fulfill this small company’s mission?

If so, here is a guide:

The Entrant’s Guide to The Automobile Industry | Asymco

It may need updating to reflect the experience of Elon Musk.

John
 

Ninja

Looking for Reality
Staff member
Super Moderator
#4
I remember being VP of a small (3 people) company approached by automotive...

We passed all of the "entry tests", and our quote won the bid war...and the SQE's came and passed us with flying colors...

Then a very nice older lady among the SQE's pulled me aside and told me what the real world looked like...I'll remember her statement until my dying day:
"I know what we want, and I know what you have, and I know how we treat vendors...and I don't want to retire with the last company I worked with bankrupt and homeless. Back away from this."

We backed away from it. (Thank you Sandy)

The company who then won the bid lost a million dollars the first year.
Every subsequent year it made millions...but that first year would have crushed our 3 person company into homeless wretches.

No matter how "small" the company is...be 100% sure that you've got your butt covered, and have deep pockets on top of that...:ca:
Get a lawyer with extensive auto experience, and never lose sight of the fact that you're there without auto...don't risk it all just to get in.
 

optomist1

A Sea of Statistics
Trusted Information Resource
#5
Hi AI40,

no links here but "some" insight from both the OEM and Tier 1 positions:
1) product or service should be exclusive or not easily obtained or replicated by other suppliers. Innovation in design and manufacturing is very appealing

2) all manufacturing processes must be locked down, plenty good verifiable data...much to the chagrin of many "Covers" Six Sigma or a facsimile is the way to go.

3) all IT systems must be up to par...required to satisfy the OEM deep data requirements

4) Transparency is a must, the really good Tier1/Tier 2s, are proactive when identifying and sharing actual or possible production issues.....i.e. if a supplier's data reveals a possible production problem or data reveals a "negative trend"...prior to shipping to manufacturing point.....they share this info with the customer to avoid assembly point or post assembly issues.


Hope this helps...
 

Marc

Hunkered Down for the Duration with a Mask on...
Staff member
Admin
#6
<snip> 2) all manufacturing processes must be locked down, plenty good verifiable data...much to the chagrin of many "Covers" Six Sigma or a facsimile is the way to go. <snip>
I take issue with this. I don't know any "Cover" who:
  • Disputes the value of data, or
  • Has any issue with "locked down" manufacturing processes, or
  • Has a problem with the various Six Sigma tools.

I am not aware of what a "facsimile" of Six Sigma is. I can only guess that you are referring to the various Six Sigma tools.

There are folks, myself included, who do not see Six Sigma as the end-all solution to any/every problem. And some see the title "Six Sigma" as an advertising gimmick.

A few discussions here include:

CQE vs. Six Sigma Black Belt - Is there a Big Difference?

CQE (Certified Quality Engineer) vs. Six Sigma Black or Green Belt and Statistics

Six Sigma - Statistical Tools - Valid or Hype? Value? Can a CQE do the same?

ASQ Six Sigma Body of Knowledge - your view?

Having dealt with automotive manufacturers in various capacities since ~1988 I can say it can be a challenge to enter the field, especially today, but no more so than aerospace or medical devices.

:2cents:
 

optomist1

A Sea of Statistics
Trusted Information Resource
#7
Hi Marc,

Good catch to keep me honest....to put a little finer point on the comment....you actually hit it on the point....Covers taking issue refers specifically the "Value" of Six Sigma", vs other methods. In addition the "facsimile" comment should have read....or any statistically based set of procedures/tools etc. to control a process or processes.

I do know that (currently) most of the US based and at least one of the APAC OEMs do value Six Sigma Skill Set and Certification, as well as CQE, etc.….so by extension Tier1/2s would do well to follow suit. CQE v SSBB may well be a toss up, when executed both effectively achieving the same results

And yes...it is not an easy road, all the more reason to think long and hard...and if its a go much preparation is required.

Optomist1
 
Last edited:

al40

Quite Involved in Discussions
#8
Thanks all,
A lot of high level discussions are further needed.
Thanks for all your input.

Best wishes,
Al40
 
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